unit 6

meibaker

does anyone has a easy way to remember which abnomal gain a/c and abnomal loss a/c and normal loss a/c. i get really confused about what's put into these account, i am ok with doing the process a/c, then i just get confused what figure should be in debit side of and credit side of the each account!
any ideas on how to remember these a/c . thnaks

SandyHood

Use the physical measures first (i.e. look at the kilogrammes metres litres etc)

Enter the kgs of materials put into the process

Enter the kgs of normal loss
Enter the actual kgs produced

If materials put in are more than(>) the normal loss kgs + the output then there MUST be an abnormal gain to make the output kgs balance the inputs.

If input kgs < normal loss + actual out put the balance should be credited (abnormal gain)